Citigroup Dialing Back Its 'Alternative' Holdings

Citigroup Inc. has shed more than $6 billion in private-equity and hedge-fund assets in the past month, according to people familiar with the transactions, in order to comply with new regulations limiting banks' holdings of "alternative" investments.

The nation's third-largest bank by assets last week sold a $4.3 billion private-equity fund called Citi Venture Capital International for an undisclosed price to Rohatyn Group,...